It's too early to exit CE. Virtual reality could be a very big industry.There a lot of excitment from gamers and others.

And Sony is building a VR headset.Reviews say it's far better than occulus rift, the other commercial competitior, and it comapres to Valve which is has the best research prototype(and doesn't intent to market it). And sony could use it position in gaming to grab a big share.

But since the PS4 is relatively underpowered for virtual reality(it's only powerfull as a mid range pc) , that means sony will have to face some difficult strategic choices.Will it sacrifice PS4 for the next market ? . It would be interesting to see how this plays.

BTW 150,000 is the number of employees accross sony electronics,entertainments and finance. How many are there in electronics ?

@resistion, that's a good question. Does Sony have the right sensing technology? I don't know. Well, they can always buy what hey need, too. But you are asking a better question. Do they have "the right resources" ( to acquire what they need, identify apps, find partners and customers, and pull the team together)? It remains to be seen.

US CE companies like GE, Magnavox, Admiral, RCA, Westinghouse, Stromberg Carlson, Fisher, and a whole host of others, have had to get out of the CE business and either reinvent themselves or disappear entirely. Sony is dealing with that same problem.

My thinking was that Sony could get involved in this IoT field and in smart cars. Both require new sensor types, so their interest in sensors could make a good fit. I agree that they don't need to keep making boxes. For example, Qualcomm, some years ago, stopped making boxes and started building only chipsets. So even this type of reinvention of a name brand is not novel.

Yes, it's a huge change for Sony, but hardly unprecedented. Why should Sony be immune to this, might be a better question. The CE business is extremely competitive. Sony's products were always priced higher than the competition, so it's not surprising that competing against the newest low bidders, China/Taiwan and Korea, was going to be difficult.